Montana Residency


This information is for general guidance only.

Please consult your tax professional for more direct guidance.

Your Montana income tax liability depends on your residency status. The following information is provided as a guide to assist you in determining your Montana residency status.

Montana has three residency statuses:

Resident

You are a Montana resident if you are domiciled or maintain a permanent place of abode in Montana.

Montana taxes all of a resident's income, even if that income is earned out-of-state.

There are a variety of factors when determining whether a person is domiciled or maintains a permanent place of abode in Montana.

These include, but are not limited to:

This is not a complete list and a person does not need to meet all of the factors listed to be considered a resident. Each individual's circumstances and intentions are considered when determining residency.

If an individual maintains a place of abode in both Montana and another state, and both show similar permanency characteristics, the department may look at whether the individual has abandoned residency in one state in favor of another state through affirmative actions.

Example:

Jim works in Wyoming for 11 months out of the year. However, Jim is registered to vote in Montana, holds Montana resident hunting and fishing licenses, and holds a Montana driver's license. These are all indications that he is a Montana resident. As a result, all of his income, even what he earned in Wyoming, is taxable on his Montana tax return.

Part-Year Resident

You are a part-year resident of Montana if you either:

Part-year residents must file an income tax return as a part-year resident and use the Nonresident/Part-Year Resident Schedule to determine their Montana tax liability.

Montana taxes the income that a part-year resident receives while living in Montana plus any income received from Montana sources when not living in Montana.

Example:

Pam lived in Montana for four months of the year, then moved to Pennsylvania.

The income she earned during those four months is considered Montana source income and is taxable in Montana.

The following individuals are examples of who would not be considered part-year residents:

Nonresident

You are a nonresident of Montana if you are neither a resident of Montana nor a part-year resident.

Nonresidents may still owe Montana income tax if they received Montana source income.

Example

Montana taxes all of a nonresident’s income from Montana sources. For example, if you lived and worked in California for part of the year, then decided to work remotely from Montana for the rest of the year, your wages earned while working in Montana are considered Montana source income. These wages are subject to tax, even though you are a nonresident. 

Military Service Members

If you are a military service member or the spouse of a military service member, review our filing requirements or see the Form 2 instructions to determine whether you have a filing obligation in Montana.